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As Brazil’s “digital middle class” emerges, brands are scrambling to show these potential new customers they understand their needs, and can fulfill them too. More than half of the population in Brazil now belongs to “class C”, which became the largest slice of Brazil’s classic “social pyramid” for the first time this past year. Known as the digital middle class, these Brazilians made up 42 percent of the country’s Internet population in 2010, and are highly coveted by digital marketers, despite their average monthly income being only US$581. These social networks have also given brands access to a previously elusive demographic: middle class women. Brazilian brands have learned that the products and strategies they’ve used to reach class A and B consumers can’t simply be “pushed down” to class C.

This new middle class is, after all, making the transition from a very different economic reality in which a can of condensed milk was considered a luxury item to be offered as a gift on special occasions. And since many class C customers live in isolated areas where electronic products such as mobile phones are essential, Casas Bahia added a video series to its shopping website to explain in plain language how to use these unfamiliar items. If wider access to credit lines over the past decade is largely responsible for allowing class C to participate in the economy, Orkut gets credit for putting class C on an even social footing, at least online.
According to research, 83 percent of class C women access the Internet on a daily basis, and 40 percent of them spend more than two hours a day on social networks. Sales at the Casas Bahia retail chain skyrocketed after the brand figured out that class C customers loved furniture with mirrored doors because it made their small homes appear bigger.

Most middle class Brazilians access the Internet from pay-by-the-hour Internet cafes (LAN houses) and don’t have time to ponder the pros and cons of buying a product while surfing on the clock.
Meanwhile, the upper classes are quietly fleeing to rival Facebook to escape Orkut’s rapid “favelization,” a term commonly used to describe the influx of lower income users.

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